Follow the author of this article

Follow the topics within this article

Britain’s most hated tax, death duty, has hit the headlines again as the Resolution Foundation has called for an overhaul of the system.

Currently, married Britons can pass on up to £1m free of inheritance tax (IHT). The first £325,000 of the value of an estate is free of tax, while the family home is subject to an additional allowance of £125,000 (rising to £175,000 by 2020) per person. Married couples can pass money between each other tax free and make use of the other's allowance.

The Resolution Foundation’s proposal would replace inheritance tax with a "lifetime receipts tax" on individuals receiving any inheritance, with each heir receiving atax-free allowance of just £125,000. Estimates...